European leaders were heading into one of the most challenging summits in recent years in Brussels on Thursday, with the agenda shifting sharply from the competitiveness of the European economy to managing a series of overlapping crises. Energy volatility, the escalation of the conflict in the Middle East and a funding deadlock over Ukraine due to a veto by Hungary’s prime minister are expected to dominate discussions among the 27 leaders.
Energy has taken center stage, however, as disruptions to free navigation in the Strait of Hormuz and broader instability in the Middle East, driven by the US-Israel war on Iran, have pushed the bloc into what European officials acknowledge is a “price crisis.”
However, EU leaders remain divided over how to respond. On one side, countries such as Greece are calling for more decisive and immediate interventions to protect households and businesses, citing precedents from the pandemic and the 2022 energy crisis. On the other, several member-states are advising a more cautious approach, saying that any hasty moves could further disrupt energy markets. The same divide is evident in discussions over the Emissions Trading System (ETS), with one group of countries – including Greece – arguing it undermines competitiveness, while others defend it as a key tool for the green transition.
European Commission President Ursula von der Leyen has backed maintaining the system, while signaling targeted measures to reduce price volatility.
Leaders are also awaiting further details on measures outlined by von der Leyen in a recent letter. These include immediate relief steps such as subsidies or price caps on natural gas, expanded use of power purchase agreements (PPAs) and contracts for difference (CfDs), and more flexible state aid rules.
For Greece, the focus is clear: tackling high energy costs, ensuring maritime security and strengthening stability in the Eastern Mediterranean. Athens is pushing for more ambitious European action, while remaining open to compromise in the final conclusions. So far, draft summit conclusions are seen as broadly satisfactory by Greek officials, as they reference the need to address rising energy prices, reduce electricity market volatility, and safeguard maritime security in line with international law.
Another key focus area for Athens is protecting the EU’s external borders and expressions of support for Cyprus.